- The company reported PAT of Rs76 mn, up 54.7% QoQ, backed by higher other income (includes dividend from mutual funds).

- The capex plan is on track, 480 tonnes of CPC Green capacity and 1,200 tonnes of H-Acid commercial production is expected from 2QFY19. The benefit of the same would start to accrue from 2HFY19 onwards.

Valuation & outlook

The completion of capex plan, will transform AksharChem business to more stable earnings from FY20E onwards. However, in the near term till the new unit get stabilized and the company is able to pass on the rise in input costs, we believe that the earnings are likely to remain under pressure. We have revised our estimates downward on the back of lower than expected operating performance (consistent with Q1FY19 results). Our revise earnings stands at Rs41.9 (earlier Rs46.4) and Rs44.4 (earlier 49.5) for FY19E and FY20E, respectively. We believe, given the supply disruption in China (environmental concern), should keep the final product prices firm, but the volatility in the raw material prices, will be the key variable to monitor. The stock has corrected sharply, since our last update dated 5th June (Reduce). At CMP, the stock is trading at 12.5x/11.8X FY19E/FY20E revised earnings, which in our view is fairly valued and offer a limited upside. Hence, we recommend REDUCE with a revised target price of Rs533 (earlier Rs640).

Shares of AKSHARCHEM (INDIA) LTD.-$ was last trading in BSE at Rs.526 as compared to the previous close of Rs. 505.75. The total number of shares traded during the day was 1097 in over 76 trades.

The stock hit an intraday high of Rs. 526 and intraday low of 512.9. The net turnover during the day was Rs. 572259.

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.